T-bills auction: Government records 60% oversubscription but at higher cost; interest rates hit nearly 13%

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The government recorded about 60% oversubscription of its treasury bills auction but at a higher cost, as investors demanded more compensation.Investors submitted bids worth GH¢7.3 billion as against a target of GH¢4.5 billion. The government however accepted GH¢6.01 billion.This time around majority of the bids came from the 364-day bill, representing 73% of the total bids.A little over GH¢5.4 billion of the bids were tendered.  About GH¢4.2 billion were, however, accepted.The 91-day bill saw bids worth GH¢1.47 billion tendered. The uptake was, however, GH¢1.34 billion.The 182-day bill recorded bids of GH¢461.9 million. A little above GH¢378 million was accepted.Meanwhile, interest rates hit nearly 13%, the first time since January 2026.The yield on the 91-day bill went up by 74 basis points to 5.73%.That of the 182-day bill also increased to 7.69% from 7.04% the previous week.Similarly, the yield on the 364-day increased by 237 basis points to 12.82%.SECURITIESBIDS TENDERED (GH¢)BIDS ACCEPTED (GH¢)91 Day Bill    1.47bn1.34bn182 Day Bill461.91m378.80m364 Day Bill5.43bn4.28bn   Total7.37bn6.01bnTarget4.602bn